Based on the Structure-Conduct-Performance(S-C-P) model, this thesis analyzes the relationship between the market structure, the construction company’s behavior, and the operation performance. The samples are 23 county in Taiwan, during 2000 ~ 2009，and a total of 230 observations are examined. A regression analysis was used to examine, and the significant variable, Residential approvals is significant. Joint Test is found supply and demand force influence company’s behavior. The supply force is slightly larger than demand (F= 22.757> 19.971), although Joint Test is not significant. However demand a plays substantial role. The dynamic market model we use Two-Stage Leasts Quare Method, to test Residential approvals, Residential completions, Land prices and Vacant houses. Land prices all significant and negatively related to approvals, indicating construction company being rational. Vacant houses all significant and positively related to approvals, indicating being a supply-led expansion. Land prices all significant and positively related to Residential completions, indicating being a supply-led expansion. Land prices all significant and positively related to Vacant houses, also indicating supply-led expansion. An effect analysis(l.e. supply and demand forces, vacant houses, transaction time, price), in a dynamic market model examined. We found that vacant houses both in OLS regression (static) or 2SLS regression (dynamic), is a significant and positively related to approvals, indicating builder still constructs, although there are many vacant houses. The transaction time is still long. Prices dynamic market model shows significant and negatively related to approvals, dynamic market when S>D, the approvals will increase, completions also rise, vacant houses will increas, the transaction time will increase, too. While the prices will drop. Because of oversupply in the market, suggesting that the construction market is dominated by the supply side, during 2000~2009.